Quoted van insurance premiums have dropped by 4.7% in the first half of the year, with drivers using vans for work and those aged between 25 and 49 seeing the largest falls.
Recent data indicates that the last three months to the end of May alone saw quoted premiums decrease by 4.2% as competition intensified among providers.
Drivers utilising vans for professional purposes have benefited considerably, with quoted premiums for "Carriage of Own Goods" dropping by 5.8%. Similarly, those aged 25 to 49 experienced a 5.6% fall in their quoted premiums.
In May, the most common quoted premiums for a new van insurance policy fell within the £500 to £749 or £750 to £999 ranges, with 19% of quotes recorded in each category.
The deflationary trend in van insurance prices began as 2025 progressed, with many competitive providers lowering their rates over the past three months. This trend has been particularly noticeable among brands from some of the biggest direct insurers, which have increased their share of top market positions and maintained competitive pricing on price comparison websites.
The leading brand for competitive share has further expanded its reach, offering more affordable options to a growing number of van drivers.
The largest premium drops were for the 25 to 49 age group, at 5.6% in the year to May. Under-25s saw a 3.5% decrease, while over-50s experienced a more modest 1.6% fall.
Currently, around 44% of under-25s can secure a quote for less than £1,500, a significant improvement from just 32% in May last year. For those aged 25 to 49, 48% could find a quote for less than £750 in May, and 44% of over-50s could obtain a quote for under £500.
Despite these recent reductions, a long-term perspective shows a substantial increase in van insurance costs. Since April 2014, average overall quoted van insurance premiums have increased by 191%. Over the same period, under-25s have seen the smallest increases at 88.5%, compared to 211.6% for those aged 25 to 49 and 213.1% for over-50s.
Tradespeople, specifically those using their vans for "Carriage of Own Goods," saw the most significant premium falls, with a 5.8% drop in the year to the end of May and a 3.9% decrease in the past three months.
Drivers using their vehicles for "Social, Domestic, and Pleasure" purposes saw quoted premiums drop by 1.1% over the last 12 months and 4.9% in the past three months.
However, it's worth noting that historically, quoted premiums for Social, Domestic, and Pleasure purposes have risen by 255.95% since data collection began, while owners using vans for Carriage of Own Goods have seen premiums increase by 166.4%.
This comes as recent analysis also revealed that the Construction sector consistently incurs the highest levels of borrowing to finance its insurance premiums, underscoring the ongoing financial pressures faced by businesses in that industry.
